(HOUSTON, Texas) – A 10-count indictment has been unsealed charging Ene Etim Hogan, the owner of a Houston area durable medical equipment company (DME), with health care fraud in an adult diaper fraud case, acting United States Attorney Tim Johnson and Texas Attorney General Greg Abbott announced today.

Hogan, also known as Ernest Hogan, 59, who owned and operated Shanet Medical Source, located on the 11000 block of South Post Oak Road in Houston, surrendered this morning to investigating agents. He made his initial appearance before United States Magistrate Judge Stephen Smith today at 2:00 p.m. at which time he was ordered released on bond. The indictment, returned under seal by a Houston grand jury on Wednesday, Feb. 11, 2009, was unsealed today following Hogan’s arrest.

Hogan is accused of routinely billing Medicaid for adult urinary incontinence supplies he did not deliver to Medicaid beneficiaries, for supplies in excess of the amount actually provided to the beneficiary and for supplies provided to Medicaid beneficiaries without a proper prescription or who did not need the supplies. Adult incontinence supplies includes adult diapers, underpads, wipes and pull-up briefs.

The indictment alleges Hogan executed the scheme to defraud beginning in June 2004 with the last alleged false claim filed in March 2006. Hogan allegedly billed Medicaid for claims totaling approximately more than $1 million and received payments for those claims totaling approximately $683,360.

Each of the 10 counts of health care fraud alleged in the indictment carries a maximum statutory penalty of 10 years imprisonment and a $250,000 fine upon conviction.

This case was the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Unit in Houston and the FBI. Special Assistant United States Attorney Justo A. Mendez is prosecuting the case.

An indictment is an accusation of criminal conduct and not evidence. The defendants are presumed innocent unless and until convicted through due process of law.